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How much trouble is Intel in?

by Sylvie Barak on 17 December 2009, 09:55

Tags: Intel (NASDAQ:INTC), AMD (NYSE:AMD), NVIDIA (NASDAQ:NVDA)

Quick Link: HEXUS.net/qavfb

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From CPUs to GPUs

Since the FTC can't fine Intel, Lande explained there were two possible options. One would be to find the company guilty of the Shermanac violation, which would likely result in a slew of private cases being brought against it, whilst the other would be to simply find the firm in violation of section five, implanting regulations to restrict the firm in the future. 

Neither option is good for Intel, but regulation five violation would be a somewhat easier cross to bear. 

"Intel will have to fight a two front war if it doesn't settle," said Lande, telling HEXUS that if the Microsoft antitrust battles had been described as World War 3.0, this latest Intel scenario was World War 4.0. 

Foer agreed, stating the case had "tremendous importance to the whole world," and could pave the way towards governmental regulations on bundling and the legality of bundle rebates. 

NVIDIA's CEO, Jen Hsun Huang, has been banging on about Intel's bundling for a while now and it wasn't unexpected that he chose to release a statement today giving his views on the matter. 

"We support today's action by the FTC, which has fully recognized Intel's behavior as an impediment to progress in the computer industry and to consumer choice," he said. 

"As the FTC states, when Intel fell behind in innovation within its core CPU market, it moved to smother competition in the GPU marketplace. This has curbed innovation and investment, and reduced consumer choice." 

"The GPU is critical for common applications like graphics, video and photo processing. Today's filing is sorely needed to stop Intel from using unlawful tactics to lock out the GPU and block consumers from its revolutionary benefits." 

Meanwhile, AMD was tactfully saying very little on Wednesday, telling HEXUS only that the "FTC's action against Intel is good news for consumers.  It is yet another example of regulators around the globe acting to protect consumers by enforcing competition laws."

 



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